Dogecoin could rally following launch of Grayscale DOGE Trust
- Grayscale announced the launch of a Grayscale Dogecoin Trust.
- The Trust offers customers exposure to DOGE's price movement and is only open to eligible investors.
- DOGE could rally as the Trust's debut prompts investors to add the meme coin to their portfolio.
Dogecoin (DOGE) saw a slight decline on Friday following the launch of Grayscale DOGE Trust, offering eligible investors exposure to the token's spot price.
Grayscale launches Dogecoin Trust, DOGE declines slightly
Asset manager Grayscale announced its Dogecoin Trust's debut on Friday, allowing investors to gain exposure to Dogecoin's price without dealing with crypto exchanges or digital wallets.
Grayscale claims that Dogecoin has risen from an initial joke based on memes to a "tool for global financial inclusion." It highlighted the token's unique characteristics compared to Bitcoin — from which the meme coin originates.
"We believe, as a faster, cheaper, and more scalable derivative of Bitcoin, Dogecoin is helping groups underserved by legacy financial infrastructure to participate in the financial system," said Grayscale's Rayhaneh Sharif-Askary, Head of Product & Research.
The firm stated that Dogecoin stays true to Bitcoin's original goal of being a widely used digital currency for everyday transactions.
"Grayscale Dogecoin Trust offers investors exposure to an asset that is positioned to help fulfill Bitcoin's originally intended use case and its egalitarian ethos," Rayhaneh added.
The launch of a Dogecoin Trust follows rising institutional demand for a DOGE exchange-traded fund (ETF). Asset managers including Bitwise, Rex and Osprey recently filed for Dogecoin ETFs with the Securities & Exchange Commission (SEC).
Most crypto community members also speculate that Grayscale could file with the SEC to convert its Dogecoin Trust into a spot DOGE ETF as it did with Bitcoin, Ethereum and XRP.
DOGE could see gains following the announcement as the Dogecoin Trust's debut could lure more investors to add the meme coin to their portfolios.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
